The Importance of Strategic Merchandising: A Brief Run Down of Why Merchandising Matters
Merchandising is often very much overlooked when it comes to putting a strategy in place for SME. It is definitely not just about making products you sell look nice with a beautiful display, it is a hugely powerful tool that will help guide your customer’s decision making and enhance their shopping experience, as well as maximising that customer's value to your business. With experience in merchandising for a very well known high street brand, as well as within my own retail bridal business, I can tell you that the right merchandising strategy will make a huge difference to your business. Put the time and effort in and this is one way you can almost guarantee an increase in your revenue stream.
Below is a brief run down of why merchandising matters, especially for small businesses:
Don’t Forget Stock & Supplier Management
Merchandising is much more than just presentation, it is about ensuring you have the right products in stock, while not being over-stocked, as well as managing suppliers effectively. Running out of a popular item can cause you to miss out on sales. Overstocking ties up valuable cash flow and for a small business can take up physical space you simply do not have. It can also cause wastage issues for items with expiry or best before dates. It is important to stay on top of your inventory, measure waste, work closely with your suppliers, and use a merchandising strategy to manage and regularly improve this process. Being able to negotiate a Just In Time (JIT) supply would be just one example we could help you implement to improve your merchandising management.
First Impressions Are Everything
Your shopfront or website is often the first interaction customers have with your brand. Having a well designed display can instantly communicate what your business is all about, as well as who it is for. You want to be able to draw people in, and not just people, but the right people, your target market. When putting together the design, think about your customer and your brand. Having a detailed brand strategy and clear brand guidelines will help you with the design process.
Encourage Browsing and Cross-selling
Smartly placed products and clear navigation make it easier for customers to find what they need—and maybe a little something extra. Cross-merchandising can encourage your customers to buy more or be used as a way to up-sell. Group complementary items together to inspire additional purchases. Think baubles next to a Christmas tree, or shoe polish next to shoes. You want to spark ideas for your customer and take them on a journey with the way in which you display your products.
Brand, Brand, BRAND!!
Consistent and creative merchandising is an important way of reinforcing your brand identity. Whether your brand has a cozy, comfy vibe or a sleek, modern aesthetic, your displays should tell your story.
At Totemo Consulting, we love helping small businesses unlock their potential and merchandising is just one piece of the puzzle. Get in touch to talk about how to make your products shine!
Do you have a merchandising tip? We would love to know! Add it in the comments!